Report: Delphi, Continental bid for JCI's electronics unit

NEW YORK — Delphi Automotive and Continental AG both bid for Johnson Controls Inc.’s automotive electronics unit, which may fetch about $1.2 billion, people familiar with the matter told Bloomberg.

Johnson Controls received first-round bids this month and is now setting up meetings between management and suitors such as Delphi and Continental, said one of the people, who asked not to be named because the process is private. Johnson Controls said March 6 that J.P. Morgan Chase & Co. had been hired to explore a possible sale of the division.

Two other bidders were Paris-based supplier Valeo SA and electronics firm Harman International Industries Inc., said one of the people. Fabienne de Brebisson, a spokeswoman for Valeo, said today that the French company isn't bidding.

Johnson Controls expects second-round bids in a few weeks, said one of the people. The company is considering the sale to free up cash and focus on more profitable divisions, such as car seats, a person familiar with the matter said last month.

Fraser Engerman, a spokesman for Milwaukee-based Johnson Controls, declined to comment, as did a representative for Continental. Spokesmen for Delphi and Harman didn't immediately respond to requests for comment.

Johnson Controls got more than half of its $42 billion in revenue in the year ended in September from its auto parts unit. The company also makes auto batteries and equipment for managing building climates and security. Johnson Controls is only allowing companies such as auto suppliers to bid on the asset — preventing private equity firms from being part of the process, the people said.